Requesting your help - and accountability

I am in desparate need of your help. I have been on a real financial roller coaster ride since mid 2007, and the good news is that right now I am earning an excellent income. This has thankfully allowed me to get caught up on my bills.

My problem? I have NOT used every dollar earned in the best way over the past year, and need to focus focus focus on getting back to following Dave's plan. I have the book and brought it out to re-read it the other day.

I was fearful of my financial situation so put my head in the sand. Just about the worst plan of non-action I could have done.

In a very slightly modified Dave, I want to pay off debts in this order: Debt number 9, then 6, then 5, then 4, then 3, 7, 8, 1, 2.

I will have a $1000 baby emergency fund by the end of July

I want to pay off the charge offs since I was given the credit in good faith but think it would be best to pay off my open accounts first.

Right now I can make my monthly budget PLUS pay a HUGE $3,500/mo extra against my debts. IF I stay frugal.

My challenge is that I travel and live out of hotel for work, and am only home for the weekend every 2 or 3 weekends. I was doing well for a while, but recently got into the BAD habit of buying lunches at the ridiculously overpriced deli near the office and sometimes even going out for dinner!! I also bought clothes and shoes I did NOT need, and paid a fortune out of town for a haircut. I think that was when I realized how out of control I was getting. I need to take advantage of this good income while I have it, and pay off debt.

I'm a consultant. My high income should continue until at least the end of the year, and if all goes well, through next year but perhaps at a lower but still good rate.

There is a fridge and microwave at the office I work in....

If I focus on eating well on the road, and stop wasting money, I can do this quickly.

Here is where my Frugal colleagues come in:

**would you be willing to help me stay on track?
**would you let me know how you would attack the debt if it is different than my plan as written above?
**because I am a consultant, should I set aside a larger EF before starting the full snowball?

I'd assume that being a consultant, you need a car that looks like you are successful, so throw your $3500 at it until it's paid off - around 5 months since it's probably your highest interest loan.

5: Car loan co-signed for and pay each month $13,600 $410/mo

Have whoever you co-signed for pay for it or else sell it - now

6: Student Loan: $1,400 $60/mo

Probably a low interest loan - keep making the payments.

7: Credit Card that went to charge off: $700
8: Credit Card that went to charge off: $1,700 (most of bal is fees)

Don't sweat the charge-offs - throw $20 and $40 dollars at them a month until they're gone

9: Gas for heat and hot water: (I owe $1,000 and need to pay this in July to keep hot water...)

Definitely pay this first (then do a baby EF.)

After the primary is gone, your car is paid for, and the co-sign isn't coming out of your pocket - Put half your excess into your now primary HELOC and the other half into a regular emergency fund. Get the HELOC paid and put that portion to the mortgage. Dip into the reg EF for the repair bills on your now primary. Find a fund you'd be happy investing in when you feel your regular EF is fully funded.

If all the stars are in the right alignment and everything falls into place, you should be sitting good in a couple years.-and since I'm not a financial counselor, take everything I say with a grain of salt, BUT I think what I said will work.-

>>My challenge is that I travel and live out of hotel for work, and am only home for the weekend every 2 or 3 weekends. I was doing well for a while, but recently got into the BAD habit of buying lunches at the ridiculously overpriced deli near the office and sometimes even going out for dinner!! I also bought clothes and shoes I did NOT need, and paid a fortune out of town for a haircut. I think that was when I realized how out of control I was getting. I need to take advantage of this good income while I have it, and pay off debt.

I'm a consultant. My high income should continue until at least the end of the year, and if all goes well, through next year but perhaps at a lower but still good rate.

There is a fridge and microwave at the office I work in....

If I focus on eating well on the road, and stop wasting money, I can do this quickly.
I think you already know what you need to do in this area...

Post your plan and progress in your sig like a lot of us do here. Having it out in the open like that keeps your accountability up. Keep posting in this thread until you feel you are where you want to be. I'm sure some one will keep you on the path

I'd assume that being a consultant, you need a car that looks like you are successful, so throw your $3500 at it until it's paid off - around 5 months since it's probably your highest interest loan.

5: Car loan co-signed for and pay each month $13,600 $410/mo

Have whoever you co-signed for pay for it or else sell it - now

6: Student Loan: $1,400 $60/mo

Probably a low interest loan - keep making the payments.

7: Credit Card that went to charge off: $700
8: Credit Card that went to charge off: $1,700 (most of bal is fees)

Don't sweat the charge-offs - throw $20 and $40 dollars at them a month until they're gone

9: Gas for heat and hot water: (I owe $1,000 and need to pay this in July to keep hot water...)

Definitely pay this first (then do a baby EF.)

After the primary is gone, your car is paid for, and the co-sign isn't coming out of your pocket - Put half your excess into your now primary HELOC and the other half into a regular emergency fund. Get the HELOC paid and put that portion to the mortgage. Dip into the reg EF for the repair bills on your now primary. Find a fund you'd be happy investing in when you feel your regular EF is fully funded.

If all the stars are in the right alignment and everything falls into place, you should be sitting good in a couple years.-and since I'm not a financial counselor, take everything I say with a grain of salt, BUT I think what I said will work.-

Originally Posted by lparker

>>My challenge is that I travel and live out of hotel for work, and am only home for the weekend every 2 or 3 weekends. I was doing well for a while, but recently got into the BAD habit of buying lunches at the ridiculously overpriced deli near the office and sometimes even going out for dinner!! I also bought clothes and shoes I did NOT need, and paid a fortune out of town for a haircut. I think that was when I realized how out of control I was getting. I need to take advantage of this good income while I have it, and pay off debt.

I'm a consultant. My high income should continue until at least the end of the year, and if all goes well, through next year but perhaps at a lower but still good rate.

There is a fridge and microwave at the office I work in....

If I focus on eating well on the road, and stop wasting money, I can do this quickly.
I think you already know what you need to do in this area...

Post your plan and progress in your sig like a lot of us do here. Having it out in the open like that keeps your accountability up. Keep posting in this thread until you feel you are where you want to be. I'm sure some one will keep you on the path

Responses...

1) PRIMARY residence
I recently just moved back into the primary after repairing damage to my rental by previous tenants I had to evict... the rental is more easily rented than the more expensive primary. Can't really sell primary right now because I am in process of renovations and I would have to spend thousands to bring it up to sales condition. Best option is to keep this house -- also has big enough yard for gardens (some I've already put in, some are in process). This home is my refuge at this point, and I would not make a profit or even break even if I sold it now. Purchased in summer of 2006 with 10% down. will need time to build equity.

2 and 3) RENTAL
I lived in this for about a year while cleaning and repairing after my former tenant destroyed the place (it took about a year to evict them: not only did I not receive rental income, but had significant repair costs. at least the expense helped at tax time so I got some of it back) It is rented to good, clean tenants who take excellent care of the property (tough to find in the area). They were my neighbors for several years and I gave them a discounted rent fee to ensure I had long-term tenants that would keep up the house and yard. I have a negative cash flow right now on the rental, but I am in a MUCH better place than I was a year ago on this property.

4) My Car
I think I'll pay off the co-signed car first and then this one, but I'm honestly not sure.... they are so close.

5) My daughter's car
It sounds logical on the surface..... but my daughter had been in a car accident and couldn't work for 2 years. she is getting back on her feet -- this is the only thing I now pay for her and I want to protect the credit. Selling the car is not a great option right now either because it wouldn't put us ahead of where we are now.

6) Student loan
I just made a payment on this tonight. GREAT news -- I was really off on the balance: it is actually only $1,104.00.

7 and 8) chg offs
That's what I was thinking, thanks.

Gas for hot water and heat:
That's what I was thinking again -- will have this by end of the week, and baby EF by end of July

YOU ARE WONDERFUL to have taken the time to really think this through and offer such excellent suggestions. I have gone through the same thought process over the past couple of years, but it is my debt and my problems that I was living through. You jumped right in there with REAL options for me to think about. THANKS so much. Please don't think my responses were excuses, it is only that I have gone over these scenarios so many times over the past few years. I truly believe that I am through the worst of it and if I just stay SERIOUS about snowballing the debt from this point on I can make it. If I can keep working there is no excuse not to have both cars paid off and working on the HELOC by end of year.

I will have all the specifics in my updated sig posted this weekend.
MUCH APPRECIATED!